Ford to Cut 1,400 White-Collar Jobs Through Voluntary Early Retirement
Move Will Help Company Reduce Costs Amid Slowing Sales
Ford Motor Company will reportedly cut 1,400 white-collar jobs in North America and Asia through financial incentives and voluntary early retirement. According to Reuters, the automaker expects to cut labor rates for a specific group of 15,000 non-production workers by about 10 percent.
Speaking to the news outlet, Ford spokesman Mike Moran said the company would hit its targets through the voluntary offers of early retirement and financial incentives, preventing the need for involuntary layoffs. He also said the company’s goal was to reduce costs and become as lean as possible.
Ford might be taking this approach in the face of the slowing U.S. auto industry. It and many other automakers have enjoyed increased sales for some time now, but the first four months of 2017 indicate that trend may be cooling somewhat. And the company isn’t alone in attempting to cut costs. General Motors cut 2,000 employees last year on slow sedan and sports car sales (although it promised additional investments in manufacturing elsewhere), and even big-truck manufacturer Daimler, which is responsible for the Freightliner brand, laid off 1,200 North American workers last year.
Of the 1,400 planned white-collar job cuts, Ford said about two-thirds would be North American, while the rest would be located in Asia. The company is currently planning on investing $1.2 billion in Michigan to make way for the new Ranger and Bronco.